Government money to Ontario auto parts maker will ensure jobs

Canada’s second-largest auto parts maker, Linamar, has agreed to maintain a minimum of 6,870 jobs at its Ontario facilities in exchange for an investment of just over $101 million by the provincial and federal governments. Combined with the Guelph company’s own commitment, the total investment by Linamar will be over $500 million. Linamar s expanding its operations to focus on producing new fuel-efficient auto transmission and power train parts. It is expected to add about 1,200 new jobs over the next decade.

The federal Transport Minister, Lisa Raitt said the federal loan of $50.7 million will help ensure that Linamar’s $506.8 million investment stays in Canada, “a great place to build cars.” The federal funding is provided through the Automotive Innovation Fund which has to date “leveraged” up to $2.3 billion for R&D and innovation in Canada. Besides that support, Canada offers auto makers “a stable economy, a low corporate income tax rate, a highly skilled and productive workforce, well-developed infrastructure and access to markets,” Raitt said.

Linamar-government-grant-Automotive-Innovation-Fund-auto-parts-industry-Ontario-EDIWeekly

For her part, Linamar CEO Linda Hasenfratz said it was “wonderful” to see governments “stepping up and being competitive,” given that there are so many jurisdictions that are willing to offer “all kinds of incentives” to companies like hers. Linamar will use the government money to fund the purchase of new equipment as well as research and development of new products. Hasenfratz called the government money “absolutely key” to enabling that investment.

Ontario’s contribution of $50.25 million is from the province’s new Jobs and Prosperity Fund, according to the premier, Kathleen Wynne. She said that such business grants are contingent on the company meeting investment and job targets.

The auto parts industry in Canada was worth about $24 billion last year. Linamar has more than 18,000 employees around the world, several thousand of them in Guelph. It reported a profit of $248.8 million on revenue of $3.2 billion in 2014. Profits and revenues were up sharply from the previous year.

In other auto news today, Chrysler president Sergio Marchionne said that the company’s new crossover vehicle will be assembled at the Windsor, Ontario plant if it goes ahead. Chrysler will invest $2 billion to develop the minivan and retool the plant to build it.

Did you miss this?

Other Popular Stories

  • Province lends steel maker $7 million for plant upgrades
  • Trucking industry moving toward use of EOBRs
  • Fuel cell market will double in five years: report
  • Ford announces Edge production will remain in Oakville
  • Canada exports more than logs and oil
  • FirstEnergy of Calgary to host ninth London Global Energy Conference
  • Canada risks losing out in renewable energy revolution
  • Another successful test: Crew Dragon flawlessly docks with Internataional Space Station
  • Canada should ease foreign ownership rules for uranium, says Sask premier
  • Manufacturing sector rebounded in February: Statistics Canada
  • Mixed results for Canada's auto parts industry: report
  • Demand for industrial real estate soaring in Canada: report
  • General Motors Planning Autonomous Vehicles Sans Controls
  • Windsor auto industry growing, needs skilled workers: report
  • Months, if not years, until balance restored in oil markets
  • Solar researchers closing in on 50 per cent PV efficiency
  • Breakthrough vehicles that dare to change the auto industry: 1300 hp EVs and 300 km ranges
  • Will Ukraine be Canada's next big oil market?
  • Canadian Solar could earn $2.3 billion through acquisition of Recurrent Energy
  • Scientists Develop Plastic-Eating Enzyme
Scroll to Top